Skip to main content


1. Why is the BankX stablecoin, XSD, pegged to the price of 1 gram of silver?โ€‹

XSD tracks the price of 1 gram of silver because fiat currency is not โ€œstableโ€. 30-40% of all the dollars in existence today were printed out of thin air in a 12-month period. The federal reserve bank cannot print silver. Instead of a central chokepoint (silver vault), the collateral is decentralized crypto. XSD is not an option, not a future and is not backed by physical silver in a vault.

The three areas of a currency: Unit of Account, Store of Value and Medium of Exchange. This does not all need to be the same currency. This is the breakdown of how we do it with BankX.

  • Unit of Account: USD (Everything in BankX is expressed in USD)
  • Store of Value: 1 Gram of Silver but collateral is crypto (Best inflation hedge while remaining decentralized)
  • Medium of Exchange: The BankX XSD Stablecoin

We chose to track the price of 1 gram of silver because it is a much better inflationary hedge. See the comparison chart of the Purchasing Power of the USD vs. the Inflation Adjusted Silver Price:

2. Most people use Tether. What is their business model?โ€‹

When you deposit USD with Tether for Tether, they take your capital and lend it to companies or other methods to deploy the capital where they earn interest. They are using your money to generate revenue for their company. BankX is set up so that you earn interest on your collateral when you mint the stablecoin. Interest is earned the entire time you keep XSD in circulation.

3. How will you fully decentralize BankX?โ€‹

Once we are done with the software development, we will decentralize the front end access to the blockchain and destroy the keys that administer the smart contract. I wrote an article on this that details a "regulation-proof stablecoin":

4. What are the uses of the BankX Token?โ€‹

The BankX token is used as partial collateral to mint the stablecoin, XSD, and is used exclusively to stake in the BankX Certificate of Deposit. In both cases, you earn interest in the form of more BankX tokens.

We are in development and will not be posting the code until the launch. We don't want anyone taking our application and launching before us with our code.

6. What is the max token supply?โ€‹

Since there is a mint/burning capability to help to stabilize the price of the stablecoin and rewards paid in the BankX token, that will change. For the launch of the system, you can see the initial token supply at:

7. Why compete with other yield farming?โ€‹

BankX doesn't replace other yield farming techniques. We add to it where you can choose how much more interest you would like to earn with BankX or it can be your complete passive income solution. With BankX, you can "Loop Without Liquidation". The XSD stablecoin you just minted buys more collateral to mint more XSD earning more interest. You can do this as many times as you like. Then take the stablecoin and do whatever you like.

8. Will you audit the smart contract?โ€‹

Yes, we have completed a security audit with Coin Fabrik and an economic audit which are at:

9. What can I do with BankX?โ€‹

You earn interest for minting the stablecoin, XSD, and for staking the BankX token in the Certificate of Deposit. You donโ€™t have to mint the stablecoin to be able to stake in the Certificate of Deposit. They are mutually exclusive and entirely up to you which one you do or both.

10. What are the transaction fees in BankX?โ€‹

There are NO transaction fees in the BankX system, only gas fees for each chain.

11. How does BankX pay interest and how it is calculated?โ€‹

There are two ways you earn interest at BankX: staking BankX in the Certificate of Deposit and minting XSD. We pay interest on the CD by inflating the BankX token supply. The amount of staking is more than the inflation we cause to pay the interest. This results in a deflationary effect on the currency which is designed for the price to go up. We use the same economic principle with the stablecoin. The BankX stablecoin, XSD, requires ETH (or the native blockchain token) and BankX (totaling 100% collateralization) to mint XSD. Since the BankX token is needed to mint XSD, this is effectively a โ€œstakingโ€ event similar to the CD. We inflate the BankX token supply to pay rewards to mint XSD and to keep it in circulation.

The market demand for XSD determines the percentage collateral of ETH. If more people like XSD (the market is buying XSD resulting in the price increasing above the peg), the system lowers the amount of ETH needed to mint the stablecoin. In this scenario, more BankX tokens are needed. The interest rate you earn on minting is tied to the amount of BankX tokens needed to mint XSD. The higher the percentage of BankX to mint = higher interest paid for minting. It takes the whole economic system in legacy banking and flips it on its head. MORE XSD DEMAND = MORE INTEREST FOR MINTING XSD.

We have designed the system so that you can create the passive income you like. See some of the sample strategies here:

12. Is the possibility of an infinite loop of minting, buying collateral and minting again and again unsustainable (LOOPING endlessly)?โ€‹

We wouldnโ€™t say it is infinite. You have a restriction of the payment of gas fees, transaction time, slippage, available liquidity of ETH and BankX Tokens, the XSD stablecoin price etc.

13. Is BankX a loan?โ€‹

No, you are paid the interest because it is your collateral used to mint the Stablecoin. Loans can be liquidated like what other stablecoin protocols do. BankX is not a loan and you are never at risk of liquidation. The worst design of a stablecoin is when there is no collateral. The 2nd worst design is where you can be liquidated. BankX is a far superior design.